Defence Budget Archives - Page 11 of 12

India’s Defence Spending: A Trend Analysis

In past two decades, the Army has witnessed a decrease in its share in the overall budget, whereas the Navy and the Air Force have increased their respective shares. This reflects a shifting priority, from land-centric armed force to an air and naval-centric force.

Planning for Sound Defence Budgets

Greater attention is needed in the areas of formulating a national security strategy in a systematic manner; effecting greater synergy between defence and national plans; capabilities-based planning and greater integration among the Services.

Address at the Inaugaral Session of the Seminar on Defence Budget

Defence budget accounts for a significant proportion of the central government expenditure. For the current year, the revenue and capital budgets of defence account for more than 20 and 80 per cent of the entire non-plan revenue and capital budget respectively of the central government. This translates into Rs 57,593 crores as revenue budget and Rs 48,007 crores as capital budget for defence. Allocation for defence has generally been the second largest single head of expenditure in the nonplan segment of the central budget.

India’s Defence Budget 2009-10: An Assessment

In its interim budget for 2009-10 the Union Government has allocated Rs. 1,41,703 crores for the country’ Defence Services that include three Armed Forces (i.e., the Army, the Navy and the Air Force), and other Departments, primarily Defence Research and Development Organisation (DRDO) and Defence Ordnance Factories. This is apart from Rs. 24,960 crores which have been earmarked to defray civil expenditures of Ministry of Defence (MoD) and its affiliated organisations, including, the Coast Guard, and for defence pension (Rs. 21,790 crores).

Budget Utilisation and Accountability

Every year as India approaches the Budget session of Parliament, there are debates in various forums about the adequacy of Budget allocation to meet the modernization plan of the Services considering the threat perceptions/scenario. Due to the economic slowdown world-wide which is likely to affect the revenue collection of the national exchequer this year, the Government may face difficulty in meeting the increased demand from the Defence Forces. Further, we should not forget that electoral compulsions are also likely to play an important role in the coming budget.

Arvind Kadyan
January 21, 2009
IDSA Comments

Budgeting for Desired Defence Capability

The Defence procurement policy and procedure as brought out in DPP- 2006 (Defence Procurement Policy, 2006) indicated that for policy decisions relating to acquiring of weapons and systems, we are basing them on capability planning in the context of operational requirements. It talked in terms of existing 'capability gaps', and examination of alternative means of overcoming them, while processing a case for policy decision.

Guest Editor’s Note

Defence Budget as a Strategic Tool of National Security

The practice of converting defence plans into publicly known defence budget is essentially a practice of democratic governments. One reason for public disclosure of defence spending could be that tax payers expect to know directly or through their representative how much is being spent on national defence and on other sectors of economy which affects their security and welfare. Disclosing the defence budget even to the domestic audience was rarely done in the past. In fact, even today, some major powers do not disclose their defence spending to the world.

N. Neihsial
May 30, 2008
IDSA Comments

India’s Defence Budget 2008-09

Union Budget 2008-09 has allocated Rs. 105,600 crores for India’s Defence. Crossing the one lakh barrier for the first time, and accounting for nearly 14.1 per cent of total central government expenditure, the Defence Budget looks quite impressive (see Box). But when seen in the context of India’s expanding interests, this allocation remains as moderate as ever. Moreover, an in-depth analysis reveals problems in defence and budgetary management, none of which show signs of abating.

Rising Cost of the Global War on Terror

The Global War on Terror (GWOT), now into its sixth year, has become one of the most expensive wars in American history. GWOT covers three military operations: Operation Enduring Freedom (OEF), which broadly covers Afghanistan but ranges from the Philippines to Djibouti; Operation Noble Eagle (ONE), which is meant to provide better security for US military bases and enhanced homeland security; and Operation Iraqi Freedom (OIF) which began with the build-up of troops for the 2003 invasion of Iraq. The cost of these operations has phenomenally increased over the years.